China Banking and Insurance Regulatory Commission, China issued the Notice on Matters Related to Personal Pension Business of Insurance Companies.
CCTV News:China Banking and Insurance Regulatory Commission, China issued the Notice on Matters Related to Personal Pension Business by Insurance Companies, the details of which are as follows.
All banking insurance regulatory bureaus, life insurance companies and China Bank Insurance Information Technology Management Co., Ltd.:
In order to promote the construction of multi-level and multi-pillar endowment insurance system and promote insurance companies to carry out personal pension business, according to the People’s Republic of China (PRC) Insurance Law and other laws and regulations and the Opinions of the General Office of the State Council on Promoting the Development of Personal Pension (No.7 [2022] of the State Council), relevant matters are hereby notified as follows:
1. Insurance companies shall implement the requirements of the individual pension system, provide simple, safe, stable and long-term commercial pension insurance, improve the protection mechanism of customers’ rights and interests, and meet the people’s growing diversified pension needs.
Two, meet the following conditions of insurance companies can carry out personal pension business:
(a) the owner’s equity at the end of the previous year is not less than 5 billion yuan and not less than 75% of the company’s share capital (paid-in capital);
(2) The comprehensive solvency adequacy ratio is not less than 150% and the core solvency adequacy ratio is not less than 75% at the end of last year;
(3) The coverage rate of the liability reserve at the end of the previous year shall not be less than 100%;
(4) Its comprehensive risk rating in the last four quarters is not lower than Class B;
(5) It has not been subjected to any major administrative punishment by the financial regulatory agency in the last three years;
(6) Having a sound information management system, connecting with the personal pension information platform of the banking and insurance industry (hereinafter referred to as the bancassurance industry platform), and registering and interacting with information according to relevant requirements;
(seven) other conditions stipulated by China Banking and Insurance Regulatory Commission.
Endowment insurance companies with prominent main business of providing for the aged, standardized business development and sound internal management mechanism may be exempted from the provision in the first paragraph that the owner’s equity at the end of last year shall not be less than 5 billion yuan.
Three, insurance companies to carry out personal pension business, can provide annuity insurance, endowment assurance, and other products recognized by China Banking and Insurance Regulatory Commission (hereinafter referred to as personal pension insurance products). Personal pension insurance products shall meet the following requirements:
(a) the insurance period is not less than 5 years;
(two) the insurance liability is limited to the payment of survival insurance, the payment of maturity insurance, death, total disability, disability or nursing status;
(3) Being able to meet the payment requirements of participants in the individual pension system (hereinafter referred to as participants) by providing wholesale payment, periodical payment or irregular payment;
(4) Other requirements stipulated by China Banking and Insurance Regulatory Commission.
Four, the insurance company to apply for personal pension insurance products insurance terms and rates for approval or filing, in addition to the provisions of the materials shall also submit the following materials:
A description of the owner’s equity, solvency adequacy ratio, liability reserve coverage ratio at the end of last year, and the comprehensive risk rating in the last four quarters;
(2) An explanation of the administrative punishment imposed by the financial regulatory agency in the last three years;
(3) A description of the docking with the banking industry platform;
(4) An explanation of the insurance clauses and rates of the company’s personal pension insurance products.
Insurance companies can incorporate existing insurance products into individual pension insurance products by applying for approval or filing of changes in insurance terms and rates. For the exclusive commercial endowment insurance products that have been approved, the insurance company shall submit the above explanatory materials to China Banking and Insurance Regulatory Commission, and it is not necessary to apply for the approval of changing the insurance terms and rates.
Five, in accordance with the provisions of this notice through the insurance terms and rates for approval or filing products can be included in the list of personal pension insurance products. The bancassurance industry platform shall regularly publish the list of personal pension insurance products.
Six, the insurance company and the participants before signing an insurance contract, it shall make a special statement on the following matters:
(a) the individual pension system and its tax policy;
(2) Requirements for the management of individual pension fund accounts;
(3) Information management requirements of the banking industry platform.
Seven, authorized by the participants, the insurance company can provide the following services in accordance with the law:
(1) Assisting participants to open personal pension accounts on the personal pension information management service platform of the Ministry of Human Resources and Social Security;
(2) Assisting participants in the designation or change of individual pension fund accounts;
(3) Registering the relevant information of the participants in the banking industry platform.
Eight, the insurance company shall sign an insurance contract with the participants separately, and clearly mark the contract in the company’s relevant information system, and shall not accept the use of funds in the personal pension fund account to insure others.
Nine, insurance companies should strengthen the management and control of personal pension funds, personal pension insurance products related to various types of capital transactions should meet the requirements of closed management of personal pension funds accounts.
X. The insurance indemnity paid by the insurance company according to the contract due to the death, total disability, disability or nursing status of the participant will not be returned to the individual pension fund account of the participant. An insurance company shall strengthen the management of insurance indemnity information and submit information to the bancassurance industry platform as required.
Eleven, the insurance company shall establish a special area for personal pension related business in the self-operated network platform, mobile client, etc., to provide business consulting, rights inquiry, information disclosure, consumer complaints, education and publicity and other services. Among them, the personal rights and interests information provided by the insurance company includes but is not limited to payment, cash value, and related insurance liabilities.
Twelve, the insurance company shall earnestly fulfill the main responsibility of sales management, improve the management system, strengthen the organization management, personnel management and sales behavior of the whole process control. Insurance companies are responsible for making sales promotional materials and urging their use, and may not authorize branches, intermediaries or individuals to make or modify them themselves.
Thirteen, China Banking and Insurance Regulatory Commission and its agencies should strengthen the supervision of insurance companies operating personal pension-related businesses, and take risk warning, supervision interviews, ordering rectification and other regulatory measures for problems found in product management, sales management, investment management and information disclosure, and impose administrative penalties according to law. Those suspected of committing crimes shall be transferred to judicial organs for handling.
Fourteen, to carry out personal pension business insurance companies shall, before 31 January each year, submit an annual personal pension business report to China Banking and Insurance Regulatory Commission and its relevant agencies, including operating conditions, insurance clauses and rates for approval or filing, and the use of funds.
15. China Bank Insurance Information Technology Management Co., Ltd. is responsible for the construction and operation of the bancassurance industry platform, supporting insurance companies’ underwriting, claims settlement, preservation and other operations, establishing systematic connection between the bancassurance industry platform and the personal pension information management service platform of the Ministry of Human Resources and Social Security and relevant financial institutions in accordance with regulations, formulating the operation and management system of the bancassurance industry platform, doing a good job in information statistics and data submission, and implementing data security responsibilities.
China China Banking and Insurance Regulatory Commission.
November 21, 2022